While we wait for more updates on Greece’s potential default, I’m taking a look at two pro-dollar forex setups this week. What do think of these charts?
As I pointed out in my EUR/USD downtrend trade idea last week, the 100 SMA had just crossed below the 200 SMA on the 1-hour time frame. Seems like other traders have noted this too, since the pair has been having trouble breaking above the SMAs since then.
If Greece’s creditors formally announce a default or if this weekend’s referendum throws more uncertainty in the markets, then we might see more downside moves for the common currency. I’m looking at possible trend line retest entries and maybe stops above the SMAs if we hear more bad news from the euro zone.
This one is for the dollar bulls! I like this setup because it lines up pretty well with a mid-channel and 100 SMA support on the 1-hour chart. Not only that, but it also makes it easier for me to get a piece of the SNB’s forex interventions. It also helps that the Greenback is getting sexy back with start-of-the-month flows and the return of talks about a Fed rate hike. What do you think? Is this pair headed higher?